Appropriation (2017/18 Supplementary Estimates) Bill

Government Bill

60—1

Explanatory note

General policy statement

Appropriation is the statutory mechanism by which Parliament authorises the Government to incur expenses and capital expenditure. Other than permanent appropriations provided for in other legislation, appropriations are provided by Appropriation (Estimates) and Appropriation (Supplementary Estimates) Bills.

This Bill seeks parliamentary authorisation of the individual appropriations, and changes to individual appropriations, contained in The Supplementary Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2018 (B﻿.﻿7) (the Supplementary Estimates) presented to the House of Representatives on 17 May 2018.

In this Bill, the individual appropriations and changes in summarised form are set out in Schedules 1 and 2. The provisions of the Bill ensure that the scope of each appropriation as set out in the Supplementary Estimates forms part of the legal appropriation. The Public Finance Act 1989 requires separate appropriations for—

each category of output expenses; and

each category of benefits or related expenses; and

each category of borrowing expenses; and

each category of other expenses; and

each category of capital expenditure; and

the expenses and capital expenditure to be incurred by each intelligence and security department; and

each multi-category appropriation.

Section 6 of the Public Finance Act 1989 provides ongoing authority for public money to be spent for the purpose of meeting expenses or capital expenditure incurred in accordance with an appropriation, the payment of goods and services tax in respect of those expenses or that capital expenditure, the repayment of debt, and the settlement of liabilities.

This Bill also seeks parliamentary authorisation for the capital injections, and changes to capital injections, contained in the Supplementary Estimates. Section 12A of the Public Finance Act 1989 provides that the Crown must not make a capital injection to a department (other than an intelligence and security department) or an Office of Parliament unless the capital injection is authorised under an Appropriation Act. By requiring capital injections to be authorised, Parliament retains control over the level of net assets that departments and Offices of Parliament may hold.

Departmental disclosure statement

A departmental disclosure statement is not required for this Bill.

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause. The Bill comes into force on the day after the date on which it receives the Royal assent.

Clause 6 authorises, for the 2017/18 financial year, the new appropriations, and the variations to appropriations, set out in Schedule 1. The variations to appropriations increase or decrease existing appropriations authorised by the Appropriation (2017/18 Estimates) Act 2017.

Clause 7 and Schedule 2 relate to multi-year appropriations. Section 10 of the Public Finance Act 1989 provides that an Appropriation Act may authorise expenses or capital expenditure to be incurred for more than 1 financial year as long as the authority (which lapses at the end of the period specified in the Appropriation Act) does not apply for more than 5 financial years. New multi-year appropriations, and variations to multi-year appropriations, are authorised by clause 7 and set out in Schedule 2. The variations to multi-year appropriations increase or decrease existing multi-year appropriations authorised by any Appropriation Act passed in relation to a financial year to which the appropriations apply.

Section 9 of the Public Finance Act 1989 concerns the scope of appropriations. Clauses 6 and 7, when read together with the definition of “scope shown in the Supplementary Estimates” in clause 5(1), each describe where the scope of each appropriation varied or authorised under those clauses is set out, making the scope of each appropriation (as set out in the Supplementary Estimates) part of the legal appropriation.

Clause 8 authorises, for the 2017/18 financial year, the new capital injections, and the variations to capital injections, set out in Schedule 3. The variations to capital injections increase or decrease existing capital injections authorised by the Appropriation (2017/18 Estimates) Act 2017.

1 Title

This Act is the Appropriation (2017/18 Supplementary Estimates) Act 2018.

2 Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

3 Application

(1)

Section 7 and Schedule 2 apply to the periods set out in Schedule 2.

(2)

The rest of this Act applies to the 2017/18 financial year.

4 Overview

This Act meets the requirements of the Public Finance Act 1989 for parliamentary control over expenditure by the Crown and Offices of Parliament as follows:

(a)

section 6 and Schedule 1 make or vary appropriations that authorise the Crown and Offices of Parliament to incur expenses and capital expenditure during the 2017/18 financial year (see section 4(1) of the Public Finance Act 1989); and

(b)

section 7 and Schedule 2 make or vary appropriations that authorise the Crown to incur expenses and capital expenditure during more than 1 financial year (see section 10 of the Public Finance Act 1989); and

(c)

section 8 and Schedule 3 authorise, or vary existing authorisations for, the Crown to make capital injections to specified departments during the 2017/18 financial year (see section 12A of the Public Finance Act 1989).

5 Interpretation

(1)

In this Act, unless the context otherwise requires,—

2017/18 financial year means the financial year ending with 30 June 2018

scope shown in the Supplementary Estimates means the scope as set out in the Details of Appropriations and Capital Injections for the relevant Vote in the Supplementary Estimates as follows:

(a)

in the case of an appropriation under section 6,—

(i)

in the table headed “Annual and Permanent Appropriations”; and

(ii)

in the column headed “Titles and Scopes of Appropriations by Appropriation Type”; and

(iii)

in the statement directly under the title of the appropriation or, in the case of a multi-category appropriation, under the name of each of the individual categories that are included in the appropriation; and

(b)

in the case of an appropriation under section 7,—

(i)

in the table headed “Multi-Year Appropriations”; and

(ii)

in the column headed “Type, Title, Scope and Period of Appropriations”; and

(iii)

in the statement directly under the title of the appropriation

Supplementary Estimates means The Supplementary Estimates of Appropriations for the Government of New Zealand for the Year Ending 30 June 2018 (B﻿.﻿7).

(2)

Terms or expressions used and not defined in this Act but defined in the Public Finance Act 1989 have, in this Act, the same meanings as in the Public Finance Act 1989.

6 Appropriations for 2017/18 financial year

Existing appropriations varied

(1)

If an appropriation specified in column 3 of Schedule 1 is authorised by the Appropriation (2017/18 Estimates) Act 2017, the appropriation is varied by the amount specified in column 4 of Schedule 1 alongside the appropriation as follows:

(a)

if the amount is in brackets, the appropriation is decreased by that amount; and

(b)

if the amount is not in brackets, the appropriation is increased by that amount.

New appropriations authorised

(2)

Each amount specified in column 4 of Schedule 1 that does not vary an appropriation to which subsection (1) applies is appropriated for the purpose of authorising the Crown or an Office of Parliament to incur expenses, capital expenditure, or expenses and capital expenditure (as applicable) against the appropriation specified in column 3 of Schedule 1 alongside the amount.

Other matters concerning appropriations

(3)

Subsections (1) and (2) apply only to the extent that the appropriation varied or authorised is of a type set out in section 7A(1) of the Public Finance Act 1989.

(4)

The scope of each appropriation varied or authorised by this section is the scope shown in the Supplementary Estimates for the appropriation.

(5)

Each appropriation varied or authorised by this section includes any expenses and capital expenditure that have been incurred—

(a)

under any Imprest Supply Act relating to the 2017/18 financial year; and

(b)

in advance, but within the scope, of the appropriation.

7 Appropriations applying for more than 1 financial year

Existing multi-year appropriations varied

(1)

If an appropriation specified in column 3 of Schedule 2 is authorised by an Appropriation Act (as specified in column 6 of Schedule 2), the appropriation is varied by the amount specified in column 5 of Schedule 2 alongside the appropriation as follows:

(a)

if the amount is in brackets, the appropriation is decreased by that amount; and

(b)

if the amount is not in brackets, the appropriation is increased by that amount.

New multi-year appropriations authorised

(2)

Each amount specified in column 5 of Schedule 2 that does not vary an appropriation to which subsection (1) applies is appropriated for the purpose of authorising the Crown to incur expenses or capital expenditure (as applicable) against the appropriation specified in column 3 of Schedule 2 alongside the amount.

Other matters concerning multi-year appropriations

(3)

Subsections (1) and (2) apply only to the extent that the appropriation varied or authorised is of a type set out in section 7A(1) of the Public Finance Act 1989.

(4)

The scope of each appropriation varied or authorised by this section is the scope shown in the Supplementary Estimates for the appropriation.

(5)

Each appropriation varied or authorised by this section—

(a)

is limited to the period specified in column 4 of Schedule 2 alongside the appropriation; and

(b)

includes any expenses and capital expenditure that have been incurred—

(i)

under any Imprest Supply Act relating to the 2017/18 financial year; and

(ii)

in advance, but within the scope, of the appropriation.

(6)

In column 4 of Schedule 2, references to the term of the 51st Parliament include the period starting at the dissolution of that Parliament and ending at the close of polling day at the 2017 general election.

Existing multi-year appropriations revoked

(7)

The appropriation authorised by section 7 of the Appropriation (2016/17 Estimates) Act 2016 for Vote Business, Science and Innovation for the category of non-departmental capital expenditure “Broadband Investment (Crown Fibre Holdings Capital Costs (UFB2)) 2016-2021 MYA”, as varied by subsection (1), is revoked with effect from the close of 30 June 2018.

(8)

The appropriation authorised by section 7 of the Appropriation (2016/17 Estimates) Act 2016 for Vote Business, Science and Innovation for the category of non-departmental capital expenditure “Communications: Broadband Investment (Crown Fibre Holdings Capital Costs) 2016-2021”, as varied by subsection (1), is revoked with effect from the close of 30 June 2018.

(9)

The appropriation authorised by section 7 of the Appropriation (2015/16 Supplementary Estimates) Act 2016 for Vote Internal Affairs for the category of non-departmental capital expenditure “Chatham Islands Wharf Redevelopment” is revoked with effect from the close of 30 June 2018.

(10)

The appropriation authorised by section 7 of the Appropriation (2017/18 Estimates) Act 2017 for Vote Parliamentary Service for the category of non-departmental other expenses “Party and Member Support - Māori”, as varied by subsection (1), is revoked with effect from the close of 30 June 2018.

(11)

The appropriation authorised by section 7 of the Appropriation (2017/18 Estimates) Act 2017 for Vote Parliamentary Service for the category of non-departmental other expenses “Party and Member Support - United Future”, as varied by subsection (1), is revoked with effect from the close of 30 June 2018.

(12)

The appropriation authorised by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017 for Vote Treaty Negotiations for the category of non-departmental other expenses “Historical Treaty of Waitangi Settlements 2017 - 2021” is revoked with effect from the close of 30 June 2018.

8 Capital injections authorised for 2017/18 financial year

Limits of existing authorisations varied

(1)

If the Appropriation (2017/18 Estimates) Act 2017 authorises capital injections to a department specified in column 1 of Schedule 3, the limit of those capital injections is varied by the amount specified in column 3 of Schedule 3 alongside the department as follows:

(a)

if the amount is in brackets, the limit is decreased by that amount; and

(b)

if the amount is not in brackets, the limit is increased by that amount.

New capital injections authorised

(2)

The Crown is authorised to make capital injections during the 2017/18 financial year to each department specified in column 1 of Schedule 3 to which subsection (1) does not apply.

(3)

The capital injections authorised by subsection (2) to a department are limited to the amount specified in column 3 of Schedule 3 alongside the department.

Capital injections made in advance under Imprest Supply Act included in authorisation

(4)

Each authorisation varied or given by this section includes any capital injection that has been made—

(a)

under any Imprest Supply Act relating to the 2017/18 financial year; and

(b)

in advance of the authorisation.

Schedule 1 Appropriations for 2017/18 financial year

s 6

Column 1

Column 2

Column 3

Column 4

Vote

Page reference in Supplementary Estimates(B﻿.﻿7)

Appropriation

Amount$(000)

Arts, Culture and Heritage

Departmental Output Expenses

2

First World War Centenary

261

2

Heritage Services

(788)

Non-Departmental Other Expenses

3

Commonwealth War Graves

(647)

3

Development and Maintenance of War Graves, Historic Graves and Monuments

160

Non-Departmental Capital Expenditure

3

National War Memorial - Capital Investment

250

3

National War Memorial Park

2,150

Multi-Category

3

Policy Advice, Monitoring of Funded Agencies and Ministerial Services

1,538

Attorney-General

Multi-Category

16

Law Officer Functions

663

Audit

Multi-Category

22

Statutory Auditor Function

13

Building and Housing

Departmental Output Expenses

30

Community Housing Regulatory Authority

150

30

Greater Christchurch Recovery

200

30

KiwiBuild Unit

3,350

30

Residential Advisory Services

1,900

30

Residential Tenancy and Unit Title Services

1,500

30

Special Housing Areas

3,000

30

Weathertight Services

(850)

Non-Departmental Output Expenses

31

KiwiBuild Operations

5,000

Benefits or Related Expenses

31

KiwiSaver HomeStart grant

(12,000)

Non-Departmental Other Expenses

31

Christchurch City Council Home Ownership Initiative

3,071

31

Housing Assistance

(348)

31

Remediation of Facades and Parapets of Unreinforced Masonry Buildings in at risk areas

Transformation Programme: Investing in New Zealand Children and their Families

4,400

Multi-Category

770

Investing in Children and Young People

21,125

Women

Multi-Category

782

Policy Advice and Related Services

112

Schedule 2 Appropriations applying for more than 1 financial year

s 7

Column 1

Column 2

Column 3

Column 4

Column 5

Column 6

Vote

Page reference inSupplementary Estimates(B﻿.﻿7)

Appropriation

Period of appropriation

Amount$(000)

Variation or replacement of previous authority

Arts, Culture and Heritage

Non-Departmental Other Expenses

4

New Zealand Screen Production Grant - New Zealand

Balance of period from 1 July 2017 to 30 June 2021 (inclusive)

518

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

4

Regional Culture and Heritage Fund (RCHF)

Balance of period from 1 July 2016 to 30 June 2019 (inclusive)

(200)

In reduction of the authority provided by section 7 of the Appropriation (2016/17 Estimates) Act 2016, as varied by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

Building and Housing

Non-Departmental Output Expenses

33

KiwiBuild Housing

Period from 1 April 2018 to 30 June 2022 (inclusive)

210,000

Non-Departmental Capital Expenditure

33

KiwiBuild Capital

Period from 1 April 2018 to 30 June 2022 (inclusive)

1,865,755

33

Vacant or Underutilised Crown Land Programme

Balance of period from 1 July 2017 to 30 June 2022 (inclusive)

51,050

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

Business, Science and Innovation

Non-Departmental Output Expenses

64

Economic Development: Assistance with Hosting of the 36th America’s Cup

Period from 1 April 2018 to 30 June 2022 (inclusive)

100,000

66

National Science Challenges

Balance of period from 1 October 2013 to 30 June 2018 (inclusive)

(67,000)

In reduction of the authority provided by section 8 of the Appropriation (2013/14 Supplementary Estimates) Act 2014, as varied by section 7 of the Appropriation (2014/15 Supplementary Estimates) Act 2015

66

Repayable Grants for Start-Ups

Balance of period from 1 July 2017 to 30 June 2019 (inclusive)

5,538

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

66

Research and Development Growth Grants

Balance of period from 1 July 2017 to 30 June 2022 (inclusive)

25,789

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

67

Targeted Business Research and Development Funding

Balance of period from 1 July 2017 to 30 June 2022 (inclusive)

3,835

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

Balance of period from 1 July 2016 to 30 June 2021 (inclusive) (but seesection 7(8) of this Act)

(372,500)

In reduction of the authority provided by section 7 of the Appropriation (2016/17 Estimates) Act 2016

69

Infrastructure: Broadband Investment

Period from 1 April 2018 to 30 June 2021 (inclusive)

582,500

Conservation

Non-Departmental Output Expenses

129

Predator Free New Zealand

Balance of period from 1 November 2016 to 30 June 2020 (inclusive)

(188)

In reduction of the authority provided by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

Education

Non-Departmental Output Expenses

213

Teacher-Led Innovation fund

Balance of period from 1 July 2015 to 30 June 2020 (inclusive)

(300)

In reduction of the authority provided by section 7 of the Appropriation (2015/16 Estimates) Act 2015, as most recently varied by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

In reduction of the authority provided by section 7 of the Appropriation (2015/16 Estimates) Act 2015, as varied by section 7 of the Appropriation (2015/16 Supplementary Estimates) Act 2016

Parliamentary Service

Non-Departmental Other Expenses

520

Party and Member Support - ACT

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election

437

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

521

Party and Member Support - Green

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election

(6,993)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

521

Party and Member Support - Labour

Balance of the term of the 51st Parliament

(22)

In reduction of the authority provided by section 7 of the Appropriation (2014/15 Estimates) Act 2014, as most recently varied by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

521

Party and Member Support - Labour

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election

3,772

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

522

Party and Member Support - Māori

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election (but seesection 7(10) of this Act)

(2,307)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

522

Party and Member Support - National

Balance of the term of the 51st Parliament

(110)

In reduction of the authority provided by section 7 of the Appropriation (2014/15 Estimates) Act 2014, as most recently varied by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

522

Party and Member Support - National

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election

8,620

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

523

Party and Member Support - New Zealand First

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election

(5,399)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

523

Party and Member Support - United Future

Balance of period starting on the day after polling day for the 2017 general election and ending at the close of polling day for the next general election (but seesection 7(11) of this Act)

(1,116)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

Pike River Re-entry

Departmental Output Expenses

540

Pike River Recovery

Period from 31 January 2018 to 31 December 2019 (inclusive)

21,974

Non-Departmental Output Expenses

540

Independent Advice on Pike River Recovery

Period from 31 January 2018 to 31 December 2019 (inclusive)

75

Primary Industries and Food Safety

Non-Departmental Other Expenses

569

Afforestation Grant Scheme

Balance of period from 1 July 2016 to 30 June 2021 (inclusive)

(10,363)

In reduction of the authority provided by section 7 of the Appropriation (2016/17 Estimates) Act 2016

569

Forestry and Other Economic Development, and Erosion Control

Balance of period from 1 July 2017 to 30 June 2021 (inclusive)

(16,940)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

570

Primary Growth Partnership

Balance of period from 1 July 2017 to 30 June 2022 (inclusive)

(80,892)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

570

Water Storage and Irrigation Investment Proposals

Balance of period from 1 July 2016 to 30 June 2021 (inclusive)

(37,900)

In reduction of the authority provided by section 7 of the Appropriation (2016/17 Estimates) Act 2016, as varied by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017

Non-Departmental Capital Expenditure

570

Crown Irrigation Investments Limited

Balance of period from 1 July 2014 to 30 June 2018 (inclusive)

(20,000)

In reduction of the authority provided by section 7 of the Appropriation (2014/15 Estimates) Act 2014, as varied by section 7 of the Appropriation (2014/15 Supplementary Estimates) Act 2015

570

Crown Irrigation Investments Limited

Balance of period from 1 July 2017 to 30 June 2021 (inclusive)

(10,200)

In reduction of the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

Revenue

Departmental Other Expenses

624

Transformation

Balance of period from 1 July 2017 to 30 June 2021 (inclusive)

26,254

In addition to the authority provided by section 7 of the Appropriation (2017/18 Estimates) Act 2017

Statistics

Departmental Output Expenses

709

2018 Census of Population and Dwellings

Balance of period from 1 July 2014 to 30 June 2019 (inclusive)

2,000

In addition to the authority provided by section 7 of the Appropriation (2014/15 Estimates) Act 2014, as varied by section 7 of the Appropriation (2014/15 Supplementary Estimates) Act 2015

Treaty Negotiations

Non-Departmental Other Expenses

757

Historical Treaty of Waitangi Settlements 2018 - 2022

Period from 30 June 2018 to 30 June 2022 (inclusive)

1,400,000

In replacement of the authority provided by section 7 of the Appropriation (2016/17 Supplementary Estimates) Act 2017, as revoked by section 7(12) of this Act